Indiana, New Mexico and Wisconsin are among some states that are asking HHS to partially expand Medicaid under the Patient Protection and Affordable Care Act, according to a Wall Street Journal report.
This past June, the Supreme Court upheld the PPACA but said the expansion of Medicaid was optional for states. This meant that states that opted out of the law's Medicaid expansion would still keep their federal funding for their normal allotment of the program.
Under the PPACA, a person earning up to 139 percent of the federal poverty level would be eligible for Medicaid coverage if his or her state decides to opt into the provision. However, some states are asking HHS if they could expand Medicaid to people making up to 100 percent of the FPL, and those making between 100 percent and 139 percent of the FPL would be steered toward the health insurance exchanges, also part of the PPACA.
States are advocating for this type of approach primarily because it would be cheaper in the long. The federal government will fund 100 percent of the Medicaid expansion through 2016, and after that, the government will cover 90 percent.
However, states view this partial expansion as more federal funding in the long term: The state would be obligated to cover a smaller number of Medicaid-eligible members, while the federal government would pick up the tab for those in the exchanges. "It's more expensive for the federal government, but it's cheaper for the state," said Seema Verma, an advisor to outgoing Indiana Gov. Mitch Daniels, in the report. "Obviously, the costs are going to play into it, not just for Indiana, but for every state."
HHS has not said whether it would approve the states' alternative Medicaid expansion plans and is still "evaluating" the question, according to the report.
This past June, the Supreme Court upheld the PPACA but said the expansion of Medicaid was optional for states. This meant that states that opted out of the law's Medicaid expansion would still keep their federal funding for their normal allotment of the program.
Under the PPACA, a person earning up to 139 percent of the federal poverty level would be eligible for Medicaid coverage if his or her state decides to opt into the provision. However, some states are asking HHS if they could expand Medicaid to people making up to 100 percent of the FPL, and those making between 100 percent and 139 percent of the FPL would be steered toward the health insurance exchanges, also part of the PPACA.
States are advocating for this type of approach primarily because it would be cheaper in the long. The federal government will fund 100 percent of the Medicaid expansion through 2016, and after that, the government will cover 90 percent.
However, states view this partial expansion as more federal funding in the long term: The state would be obligated to cover a smaller number of Medicaid-eligible members, while the federal government would pick up the tab for those in the exchanges. "It's more expensive for the federal government, but it's cheaper for the state," said Seema Verma, an advisor to outgoing Indiana Gov. Mitch Daniels, in the report. "Obviously, the costs are going to play into it, not just for Indiana, but for every state."
HHS has not said whether it would approve the states' alternative Medicaid expansion plans and is still "evaluating" the question, according to the report.
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